Supporting
young savers:
The case for
savings clubs
in schools
1
Foreword
2
It has never been so important to ensure
that children learn about debt and money
management from an early age
With children making financial
choices at an ever younger age, and
regularly exposed to advertisements
for credit, it has never been so
important to ensure that children
learn about debt and money
management from an early age.
Schools have a key role to play
in ensuring that children get the
financial education they need, and
it is a welcome step in the right
direction that the government
has made financial education a
statutory part of the secondary
curriculum – but this work needs
to go much further. Children are
Sir Hector Sants,
Chair, Archbishop’s Task
Group on Responsible
Credit and Savings
making financial choices and
developing their attitudes towards
money long before they even
get to secondary school. That is
why we are together calling for
the government to take action to
ensure that children get a sound
financial education starting in
primary school.
Practical experience has an
important role to play in achieving
this, and through partnerships with
local credit unions many schools
have now introduced innovative
‘savings clubs’ which support
young people to start saving early.
Matthew Reed,
Chief Executive,
The Children’s Society
By supporting and promoting the
development of savings clubs
in primary schools across the
country, the government could
help to ensure all children get
the right start in developing their
financial capability.
Supporting young savers can play
a crucial role in developing the
attitudes and behaviours which
children need in order to have a
positive approach to money both
as children, and into adulthood.
Mark Lyonette,
Chief Executive,
Association of British
Credit Unions Limited
Michael Mercieca,
Chief Executive Officer,
Young Enterprise
1. Introduction
Financial education in schools
can play a key role in improving
children’s financial capability
In recent years many countries –
including the UK – have become
increasingly concerned about the
financial capability of their citizens
in general and their young people
in particular. This has stemmed
from wide ranging developments
in the financial market place,
including shrinking public and
private support systems, and
shifting demographic profiles –
specifically an ageing population.
Concern was heightened by the
financial crisis of 2008, with the
recognition that a lack of financial
capability was one of the factors
contributing to consumers making
bad financial decisions. As a result,
raising levels of financial capability
is now globally acknowledged as
an essential component of
financial consumer protection
and a nation’s financial and
economic stability.
Financial education in schools
can play a key role in improving
children’s financial capability to
both make good money choices
in the present, and to grow up
with the skills, attitudes and
experiences they need to make
the right money choices as
independent adults.
Effective financial education
typically demonstrates three key
characteristics:
1. It starts early
2. It provides opportunities for
children to have practical
experience of money
management,
3. It engages in a whole
school – or even community –
approach to saving and money
management.
In many areas credit unions have
sought to work with schools to
introduce ‘savings clubs’ through
partnership with a local credit
union. These can be an effective
way of introducing children to
debt and money management
issues from an early age, allowing
them to make links with the wider
community, and giving them the
practical experience they need to
make the right choices about their
finances both now and in the future.
Credit unions recognise the value
of partnerships with schools and
the positive effects this has on
young people. However, this does
not generate income for credit
unions so the challenge is to create
a model whereby credit unions
can expand these services to more
schools in a sustainable and cost
effective way.
Calderdale
Calderdale Council’s Economic
Task Force has identified
£50,000 from the Economic
Fighting Fund to develop and
implement a pilot Junior Savers
scheme, delivered by Calderdale
Credit Union and other local
partners. This scheme takes the
learning from a scheme already
established by Glasgow City
Council in partnership with credit
unions across Glasgow.
1 http://news.calderdale.gov.uk/boost-for-young-savers/
The Junior Savers Scheme1 will
aim to provide all children in Year
7 at a Calderdale school with £15
in their own account. The money
will remain as the minimum
balance for five years – through
to Year 11. If accounts are not
used by the time the child
leaves Year 11 the money will be
reclaimed to fund future years of
the project.
Credit union volunteers will be
available to support regular
savings clubs. By promoting a
better understanding of money,
it is hoped that young people
will be more aware of budgeting,
saving, borrowing and how to
avoid scams. The scheme will be
rolled out between September
and December 2014.
3
2. What we know
about the problem
4
Credit cards, phone contracts and tuition fees all require young
people to start making financial choices and decisions at an early age
Young people today grow up in
an increasingly complex world
requiring them to make difficult
decisions that will often have a
significant impact on their future.
Credit cards, phone contracts
and tuition fees all require young
people to start making financial
choices and decisions at an
early age.
If we are to enable future
generations of young people
to manage their finances well,
children must be given high quality
financial education in school so
they can make informed choices
and take responsibility for their
own actions. Prevention is better
than cure, because it is both
cheaper and more effective.
Development of financial
capability among young people
is increasingly being seen as
essential because:
nYoung people engage with the
financial services sector at
an early age. Research2 and
surveys from the Personal
Finance Education Group
(pfeg) identify:
nCurrent and future financial
choices faced by today’s
young people are likely to be
more challenging than past
generations due to their range
and complexity.
nYoung people bear more
financial risk in adulthood due
to increased life expectancy,
decreases in welfare benefits,
changes in student funding
arrangements, and uncertain
economic and job prospects.
– 64% of children get their
first bank or building society
account before they start
secondary school
– 58% of children bought
something online before or
had something bought for
them online for the first time
before they were 12
– Nearly three quarters of 15
year olds with a bank account
have a debit card.
Glasgow
Glasgow City Council launched
its Future Savers scheme in
January 2014, offering every first
year high school pupil in the city
a credit union savings account
with an opening balance of £10.
Every secondary school in
Glasgow has been matched with
one of the city’s credit unions,
and more than 4000 first year
pupils are eligible for one of the
accounts.
2 Source: BBA/pfeg/YouGov survey, September 2013
Dubbed ‘Your Starter for Ten’,
first year pupils opening one of
the accounts will receive £10
from Glasgow City Council with
a view to adding to that balance
with regular savings throughout
their time at high school in order
to learn good habits of saving
and budgeting responsibly.
The council’s stated aim is to
encourage every young person in
the city to develop a relationship
with a credit union so that they
will learn about managing money
and have the opportunity to
save. The idea is that when in
adulthood they decide they need
to borrow, that decision will not
only be well informed, but they
will also have access to an ethical
lender that knows them and will
help them, rather than being
vulnerable to high cost lenders.
Glasgow’s example has been
followed in neighbouring
Renfrewshire and North
Lanarkshire, and has inspired
a number of similar schemes
across the UK.
5
nThey have high levels of
exposure to debt – research
from The Children’s Society
and Stepchange Debt Charity
has found that more than half
of children aged 10 to 17 said
they saw advertising for loans
‘often’ or ‘all of the time’.3
nYoung people are likely to
have greater responsibility for
planning their own retirement
savings and investments.
nOECD evidence shows that,
internationally, younger
generations have lower levels of
financial capability compared
with their parents.4
It has also been shown that poor
money management can have
an adverse effect on health. A
study for the Financial Services
Authority5 in 2009 found that
financial capability has significant
impact on psychological health,
over and above the impacts
associated with income and
material well-being more generally.
For all of the reasons explored above,
children and young people need
an effective financial education,
which helps them to understand
the different financial products and
services available to them. These
include, for example, credit unions’
products, services provided by
high street banks and the dangers
associated with illegal lending.
3
4
5
6
This will allow them to make positive
financial decisions in their adult life.
By starting to learn about money
and developing strong levels of
financial understanding when they
are young, there is also a greater
chance that this will be sustained.
However, ensuring that children
receive the necessary support
to build financial competence is
not an easy task. The All Party
Parliamentary Group (APPG)
Report on Financial Education
for Vulnerable Young People6
published in 2013 found that:
nMost young people recognise
the importance of being
capable of managing their
money and yet do not always
know where to go
nPractitioners working with
vulnerable young people
need to have the skills and
confidence to address money
matters.
Source : The debt trap: exposing the problem of debt on children. The Children’s Society and Step-Change 2014
www.oecd.org/daf/fin/financial-education/TrustFund2013_OECD_INFE_Finl_Ed_for_Youth_and_in_Schools.pdf
Source: Financial capability and wellbeing: evidence from the British Household Panel Survey May 2009
www.pfeg.org/sites/default/files/Doc_downloads/APPG/Financial%20Education%20for%20Vulnerable%20Young%20People.pdf
6
3. The role of schools in
children’s financial education
Learning can start as early as nursery and pre-school education
and then progress through primary school and into secondary
Including financial education within
the formal school curriculum
is recognised as one of the
best ways to deliver financial
education to young people on a
large scale. Learning can start as
early as nursery and pre-school
education and then progress
through primary school and into
secondary. This would ensure
young people have the knowledge,
skills, understanding, values and
attitudes which will enable them to
make savvy and effective financial
decisions in their daily life and
when they become adults.
The key role played by schools is
well documented and appreciated:
nThe OECD Recommendation on
Principles and Good Practices
for Financial Education and
Awareness acknowledged that
‘....financial education should
start at school. People should
be educated about financial
matters as early as possible in
their lives’.
nThe APPG on Financial
Education for Young People
report published7 in December
2011 called for financial
education to be a compulsory
part of every school’s
curriculum at both primary
and secondary level.
nParents and teachers think
it is important. In a survey
undertaken8 to inform the
APPG’s report on financial
education in the curriculum:
– 94% of teachers said it
should be taught.
– 79% of parents felt it was
important that children of
9/10 years should learn
about money and financial
matters at school.
nYoung people themselves
recognise its importance.
In a report published in
2013, 90% of young people
think it is important to learn
about money.9 Children
are naturally curious about
issues related to money and
are able to grasp even
relatively complex concepts
(eg credit) if explained in
terms and language they
are familiar with.10
A planned programme of
financial education will use all the
opportunities a school curriculum
provides for developing financial
capability. Mathematics, Personal,
Social, Health and Economic
(PSHE) education and citizenship
all have a role to play in helping
young people make the most of the
opportunities and challenges that
money brings in life.
7 Source: Financial Education and the Curriculums APPG on Financial Education for Young People.
8 Source: pfeg/EdComs survey 2011
9 Source: RBS MoneySense Research Panel Final Report 2013
10 Sources: Home-Start/Lloyds banking Group Money Talk: Adults and ChildrenTalking about Money 2014
Financial education
in primary schools
Financial education features in
mathematics and non-statutory
programmes of study for
citizenship and PSHE education
at key stages 1 and 2. As well as
developing mathematical skills,
pupils also need to consider their
attitudes towards money so they
can understand what drives the
choices they make and how they
will feel about the consequences.
In line with the way primary
teachers plan, there are many links
to other curriculum areas too. As
well as ‘money’ being an interesting
topic in its own right, it can also
feature as an aspect of other topics
such as ‘Ourselves’, ‘Homes and
Houses’, ‘Toys’, ‘the Victorians’ and
‘World War II’.
Financial education
in secondary schools
The importance of financial
education has been recognised
in the new secondary National
Curriculum for England. From
September 2014 financial
education will be taught as
an aspect of citizenship and
mathematics. Together with PSHE
education this provides more
opportunities than ever for a wellbalanced and rounded financial
education.
7
This is a very welcome step.
A survey11 conducted earlier this
year by The Children’s Society and
Stepchange Debt Charity found
that only one in five children aged
10–17 said that their school taught
them about debt and money
management.
However, inclusion of statutory
financial education in the
curriculum is not, in its own right,
sufficient to ensure that children
receive the financial education they
need. This education must also
be of high quality. How to achieve
this is discussed in the following
section.
Berkshire Community Savings
and Loans (CSL)
The schools programme is
funded by a grant from the
Earley Trust, and has been
offered to all 32 primary
schools within the area covered
by the trust12 (Reading and
surrounding areas). The trust
already has an established
relationship with local primary
schools, having supported
school libraries for many years.
The grant pays for 26 hours a
week of a paid member of staff’s
time. Six schools have signed
up already and many more have
expressed an interest.
Schools are offered support and
training to set up a savings club,
linked to the credit union, and
access to a pack of online lesson
plans developed for Berkshire
CSL (which focuses on values,
as well as skills/knowledge eg
the difference between ‘needs’
and ‘wants’). Schools can adopt
either or, ideally, both.
11 Source: The debt trap: exposing the problem of debt on children. The Children’s Society and Step-Change 2014
12 www.oxford.anglican.org/churches-urged-to-support-credit-unions/
Emphasis is on rewarding
saving, for example by giving
out certificates and prizes and/
or the PTA match-funding the
children’s own savings. Children
are also encouraged to think
about what they can do with
their savings (eg saving for a
present for Mothers’ Day).
These primary schools
previously offered very little
financial education, because it
is not currently on the statutory
curriculum and because they
do not have the experience or
confidence to do it, although
they recognise its value.
The savings club run once a
week under the supervision of
an adult (parent or teacher).
Pupils are trained to run the
bank for themselves, as junior
bank managers, cashiers and
marketing manager.
4. Key determinants of effective
financial education programmes
8
There is no ‘quick fix’ when it comes to implementing a planned
programme of financial education for young people
Although there is widespread
agreement on the need for
financial education in schools, it is
also crucial to ensure that any such
work is of the requisite standard
to make a long lasting impact.
Concerns have been raised over
the range of topics delivered, the
frequency and extent of coverage,
the inadequacy of assessment
arrangements and the confidence
of teachers. Creating a Step
Change in School13 stated that:
Clearly schools play a key role
but parents, teachers, employers,
financial institutions and the
government need to work together
to make sure young people get the
right level of financial education at
every stage of their lives – at home,
through primary and secondary
school and into the workplace.
Some of the key components
of effective financial education
programmes are outlined in the
following sections.
‘Most schools do not
have an assessment
policy and practices
in place for personal
finance education. It
is important to know
whether measures
taken are effective
and long-term,
hence the need for
good assessment
methodology’
Start young
There is no ‘quick fix’ when it
comes to implementing a planned
programme of financial education
for young people. Challenges
include the lack of quality teaching
and learning materials, an overloaded curriculum, and insufficient
expertise among teachers.
13
14
15
16
17
18
The OECD recommends that
financial education should start as
early as possible.14 Young people
encounter money and finance at
an increasingly early age. A survey
in 2013 suggested that 64% of
children get their first bank or
building society account and 63%
get their first mobile phone before
they start secondary school.15
The importance of starting young
is not just because children are
engaging with money management
earlier. Research published by the
Money Advice Service suggests
that many habits around money
are formulated by the age of
seven.16
Supporting learning
with a real experience
The emerging UK National
Strategy for Financial Capability
being led by Money Advice Service
identifies the importance of
exposure and access to financial
products as a key contributor to
helping young people become
financially capable.
Having greater financial knowledge
and skills may motivate young
people to engage in more formal
financial services and having a
bank or savings account is one way
for students to learn about money.
In 2012, the OECD undertook the
first ever international assessment
of the financial knowledge and
skills of 15 year olds. This covered
approximately 29,000 students
in 18 countries. Findings from
the assessment, published in
2014, suggest that holding a bank
account helps promote financial
capability.17
Some studies have suggested that
having a bank or savings account
to make deposits could help foster
the savings habit. Examining
cross-country historical evidence
of public policies to promote
savings suggests that countries
that fostered savings habits among
children in the past tend to display
higher savings in recent decades.18
www.fsa.gov.uk/pubs/other/step_change.pdf
Financial Education in Schools: Policy guidance, challenges and case studies
BBA/pfeg/YouGov survey, 2013
Source: Money Advice Service Habit Formation and Learning in Young Children 2013
Source: OECD PISA 2012 Results: Students and Money. Financial Literacy Skills for the 21st Century (Volume VI ), 2014
Studies cited in OECD PISA 2012 Results: Students and Money. Financial Literacy Skills for the 21st Century (Volume VI ), 2014
9
A whole school approach
Financial education can be
delivered through a number
of subject areas including
citizenship, mathematics and
PSHE. Indeed, some aspects of
financial education may be taught
more appropriately in specific
subjects eg calculating interest
rates in mathematics or personal
budgeting in PHSE.
However, it is essential that
there is a coherent and planned
programme of financial education.
This means that the teacher
responsible for co-ordinating
financial education in the school
needs to map out clearly where
elements of financial capability are
being taught.
In order to meet this need pfeg
have created financial education
planning frameworks to help
teachers and educators working
with children and young people in
the 3–11 and 11–18 age ranges.19
The frameworks aim to support the
planning, teaching and progression
of financial education by setting
out the key areas of financial
knowledge, skills and attitudes,
across four key themes:
nHow to manage money
nBecoming a critical consumer
nManaging risks and emotions
associated with money
nUnderstanding the important
role money plays in our lives.
It is designed to help teachers and
schools deliver financial education
flexibly across a range of subjects
and learning opportunities that are
within a school’s curriculum.
Involving the wider
community
Using schools, teachers and the
curriculum is a very important
part of the process to help young
people become financially capable
but there are other key influencers.
The role of parents and the wider
community is also very important.
‘Approaches, practices and skills
which are modelled, discussed
and demonstrated by parents and
other significant adults, are most
likely influential ‘levers’ supporting
the development of habits and
practices.’ 20
I Can Save
The ‘I Can Save’ programme is
an innovative four-year schoolbased financial education
and savings programme that
operates in a US elementary
school (for children aged 5-10).21
Over a four-year period, children
received classroom-based
financial education (one half
hour per week) and incentives
for saving through participating
in a voluntary after-school
‘I Can Save’ club (including
a $500 seeded account and
one-to-one matched savings
for all subsequent deposits). I
Can Save also offered financial
education workshops for parents
on topics such as financial goals,
budgeting, and debt.
Children who took part in the
program scored significantly
higher on the ‘financial fitness
test’, a measure of financial
knowledge, compared with a
control group of other children in
the same school, suggesting that
it was successful in improving
children’s financial capability.
Interviews with teachers, parents
and children underscore the
benefits of this approach, and
provide evidence that having
their own savings account
motivated pupils to learn about
a range of financial issues.
Overall, the findings suggest that
‘even very young children enjoy
and can learn about economic
and financial concepts if they
are conveyed in an engaging
manner.’ 22
19 Frameworks can be downloaded from www.pfeg.org/planningframeworks
20 Source: Money Advice Service Habit Formation and Learning in Young Children 2013
21 http://csd.wustl.edu/Publications/Documents/WP09-16.pdf
22 S
herraden, M. S., Johnson, L., Guo, B., & Elliott, W. (2011). Financial capability in children: Effects of participation in a school-based financial education and savings program.
Journal of Family & Economic Issues. 32(3): 385-399.
10
In a recent survey 85% of
respondents aged 15-18 said they
derive most of their financial
understanding from their parents.24
This reflects research published in
2013 as part of the five year RBS
Money Sense Research Panel,
which identified that 71% of young
people who participated in the
panel think their parents are best
placed to help them learn about
managing money.25
1st Alliance Credit Union
1st Alliance is currently working
with eight primary schools and
one academy, and started this
work six years ago. The work
is seen as being part of their
‘core business’ of building the
‘next generation of members’.23
It is also viewed as a good way
to give something back to the
community, and being seen doing
it, which has helped to raise local
awareness of their organisations.
The scheme is promoted by a
full-time outreach worker, who
spends around 10% of their time
on schools work. They initially
target two key adults within
the school, either a teacher or
someone on the parent teachers
association (PTA), who is
23
24
25
26
trained by the credit union. The
responsible adult then trains
and supervises pupils to run the
savings club, including a bank
manager, teller and cashier, with
pupils taking turns to play the
different roles.
The key to the success of the
scheme is ensuring that the
savings club is an integral part
of school life, and consequently
there is active involvement of
teachers, PTA members and
pupils. Each child is given a
savings book to record their
saving and is encouraged to
set themselves savings goals. It
needs to be fun, so schools hand
out badges and certificates eg for
helping to run the bank.
www.south-ayrshire.gov.uk/news/girvan-academy-pupils-bank-for-their-future.aspx
Source: IFS University College Young Persons’ Money Index 2014
Source: RBS MoneySense Research Panel Final Report 2013
Sources: Home-Start/Lloyds banking Group Money Talk: Adults and ChildrenTalking about Money 2014
However, findings from a report
commissioned by The Home-Start
Charity that found that while 75%
of children think they should be
involved in family discussions
about what to spend money, 31%
of parents think it inappropriate
to include their children in general
discussions about money.26
The report suggests that while
many parents say they believe it is
important to talk to their children
about money and involve them
in some of the smaller spending
decisions, in reality money is
often considered to be too
sensitive to discuss.
11
With parents having such a big
influence on children and their
spending habits, opportunities
need to be created that will
encourage and help them to talk
to their children about money.
Guidance, opportunities and
prompts in identifying what
they can do can all help parents
to discuss this issue with
their children.
nEncourage them to use their
pocket money to pay for
comics, toys and sweets to
help them learn about the
limits of cash.
Overall, effective financial
education programmes need to
address three key criteria which
build on each other:
nStarting early
nGet them in the habit of
checking their change.
For secondary aged students the
article suggested they should also:
nTaking a whole school approach
and engaging with the wider
community
nProviding a real experience of
In early August 2014 the Money
Advice Service produced ‘Teaching
your kids the financial facts of
life’. To coincide with the summer
holidays the feature suggested
that parents of primary aged
children could:
nWhen shopping, ask their
child to compare the prices
of similar products, such as
tinned tomatoes. Point out that
similar items can cost more
or less, and that by comparing
prices they can make money
go further.
nKeep some cash aside for
financial management.
emergencies – such as if they
lose their bus pass and need to
pay for a ride home
nWork out a budget to cover
their average weekly intake so
that they have enough to spend
on sweets and other treats
nEncourage older secondary-
school pupils to budget for big
nights out with friends, such
as a trip to the cinema, and to
cover the cost of pay-as-you-go
mobile phones.
Step 3
Step 2
Step 1
By starting early habits and
behaviours towards money
can be embedded from a
young age allowing positive
attitudes to develop.
By working with parents, and
local organisations, financial
education programmes
delivered by schools can
ensure that they engage with
other important agencies
which influence children’s
attitudes towards money.
By offering practical lessons
as well as theoretical
information, children and
young people can easily
become accustomed
to everyday financial
transactions and learn
how to be a critical consumer
of financial products.
5. Savings clubs
in schools
12
Savings clubs have the potential to provide a core component of a child’s financial
education, and can fundamentally affect children’s attitudes towards money
By providing early, practical
experience of money management,
which ties in with work of the
whole school, savings clubs have
the potential to provide a core
component of a child’s financial
education, and can fundamentally
affect children’s attitudes towards,
and knowledge of, money.
It is vital for sustainability of
both the credit union and the
savings club that efficient and
streamlined tools are in place to
make collections as cost-effective
as possible. Schools savings clubs
do not generate income for credit
unions, and while they are keen to
help the next generation develop
strong financial skills, they do not,
in the short term, contribute to the
overall strength of the credit union.
What does a school
savings club look like?
A number of areas across Britain
already have savings clubs in
schools and in many cases these
are well established, but credit
unions can struggle with the
financial and personnel resources
to meet local demand. For that
reason, any scheme which aims
to eventually reach significant
numbers of students needs to be
efficient and scalable.
An effective savings club
programme typically has three
core components:
1.A partnership between a
school and a local credit
union to provide savings
accounts for students
The credit union provides the
account, while the school provides
and facilitates the opportunity for
children to deposit and withdraw
money, and to tie this in to financial
education within the school.
The school may also provide
additional activities, such as
reward programmes for savers.
2.An opportunity at school for
children to deposit in, and
withdraw money from, their
savings account
This may take the form of a ‘school
bank’ run by members of the local
credit union, school staff, parents,
or pupil volunteers, which may
be run before, during or after the
school day.
The school may further facilitate
the club by depositing money with
the credit union on behalf of the
children as part of their regular
banking run.
3.Integration of the savings
club with financial education
in the school
A savings club is often not just
about encouraging the practice of
saving, but also to develop
Falmouth
An excellent example of
financial education in schools is
provided by St Mary’s Catholic
Primary School in Falmouth,
where children are introduced
to economic ideas in the Early
Years Foundation Stage and
there is progression through
to Year 6.27 Crucial elements
of the programme include a
school bank set up to promote
the importance of savings and
money management.
‘The bank is run weekly by
the children, who applied
and were interviewed for
roles in the bank. Every child
and member of staff has a
bank account which is used
predominantly for saving
for school trips. After four
years over £40,000 has
been deposited. This has
resulted in real enthusiasm
in our pupils in managing
their money, raising money
for others and heightened
awareness of global
economics.’
Jacqui Scarborough,
Headteacher
Helen Bancroft, Deputy
Headteacher
27 www.ofsted.gov.uk/resources/good-practice-resource-outstanding-enterprising-curriculum-equipping-children-for-their-lives-st-mar
13
a better approach to money
management issues more
generally. One way of achieving
this is by integrating the practical
experiences of the savings club
into the wider financial education
curriculum delivered by the school.
Developing savings
clubs in schools
It should also be noted that, while
this report focuses on savings clubs
in primary schools, it is important
that the benefits of these clubs are
maintained into secondary school
which is a challenge at present.
Some secondary schools also run
successful savings clubs in
their own right and improving
the transition from primary
to secondary schools is important
to address if children are to
maintain good savings habits
in the long term.
Savings clubs in schools can be
a great way to improve children’s
financial capability, providing
a balance between practical
learning and classroom education.
This allows children to both
understand the principles of
responsible money management,
while developing skills around
transactions and handling money.
It should be noted that not all
models of savings clubs in schools
which are currently in place are
cost efficient for credit unions.
This makes a leaner approach,
supported by new technology,
vital in developing a more scalable
model that allows more schools
to become involved. Government
could support the development
of a leaner approach to delivering
savings clubs in schools.
Starting early
Children’s attitudes to debt
and money management
develop early – savings clubs
in primary schools can be a
key early intervention.
Savings clubs
in schools
Taking a whole
community approach
Providing practical
experience
Partnerships with local credit
unions can be a great way for
schools to engage the whole
community in children’s
financial education.
Complementing theoretical
learning about debt and
money management with
practical experience of saving
can help to boost engagement
with financial education.
14
Neath Port Talbot Credit Union (NPTCU)
The schools programme in Neath
and Port Talbot has been running
since 2007, and was established
with funding from the local
authority to employ a part-time
schools officer. There are now 30
primary schools taking part with
2162 junior savers and £143,000
in savings. This activity has been
made possible with multiple
revenue funding streams over
several years to sustain the
partnerships.
The savings club gives children
a practical experience of
handling money, reinforcing
their classroom-based financial
education. To make it fun,
children are rewarded with
badges, key rings and certificates
for saving regularly. Teachers
can save with the credit union via
their payroll scheme, and parents
are also encouraged to join and
use the credit union to save for
school trips.
the school website, and text
messages to all the parents. In
addition, the marketing of the
scheme has been helped by
having a ‘mobile office’ which
acts as a credit union collection
point in some communities.
The schools officer supports
schools until they have the
confidence to run the scheme
themselves. The savings club
takes the name of the school,
which helps to give them a
sense of ownership.
NPTCU Business Development
Manager Julie Mallinson, who
oversees the programme,
acknowledges that without
further funding this schools work
is actually a net cost to the to the
credit union, but sees it as a very
important part of their work in
the community and provides a
platform for greater engagement
with both teachers and parents.
Every school year, the scheme
is re-launched, and is well
advertised with banners outside
the school, advertising on
6. Conclusion and
recommendations
One way the government could move towards effective financial education
from an early age would be by promoting savings clubs in primary schools
Children are faced with an
increasingly complex world
of financial decisions, but are
regularly faced with advertising
which encourages an irresponsible
attitude towards debt and money
management. For this reason, it
has never been so important to
ensure that children are getting an
effective financial education which
promotes saving.
This is a big challenge, but
achieving this would take a big
step towards a future free from
problem debt.
The inclusion of statutory financial
education in the secondary
curriculum is a welcome first step.
But action on this issue needs
to go further by recognising the
evidence that children’s attitudes
towards money are engrained
at a very early age, and working
to ensure effective financial
education starts in primary
schools or earlier.
This would have two main
positive effects:
1.It would raise the aspiration
of children to save for the
future which promotes a
healthy and sustainable
attitude to financial
management
2.It can help to address
children’s exposure to TV
advertising for credit and the
potential for this to lead to
taking on high risk debts.
We believe that any such
educational programme will
need to engage with parents
as well, especially as they are
proven to be the main influence
on children’s attitudes to money
while they are in primary school,
with an enduring influence into
adolescence as well.
One way the government could
move towards effective financial
education from an early age would
be by promoting savings clubs in
primary schools. By starting early,
providing practical experience
to support theoretical learning,
and by creating links between the
school and the wider community,
the development of savings clubs
in primary schools can play an
important role in developing positive
attitudes towards debt and money
management among children.
There are a number of ways in
which the government could
support the development of school
savings clubs, such as by providing
‘seeded’ credit union accounts (as
in the I Can Save programme in the
US) to give children an initial pot of
money to start them saving.
By implementing this, we can help
children early on to effectively
manage their money and to avoid
unnecessary debt. By supporting
young savers we can help secure
them a healthy financial future.
15
16
Archbishop’s Task Group on Responsible
Credit and Savings
The Archbishop of Canterbury’s task group seeks
to harness the Church’s resources - its people,
premises, networks and influence – in order to
increase the availability of responsible credit and
saving across all communities, offering a real
alternative to payday lenders and other forms of
exploitative lending.
The task group is developing a number of
practical initiatives to help stimulate the growth
of credit unions and other community finance
organisations, expand the provision of financial
education and debt advice services, and raise the
profile of these issues with policy-makers and the
wider public.
Association of British Credit Unions Limited
The Association of British Credit Unions Ltd
(ABCUL) is the leading trade association for
credit unions in England, Scotland and Wales.
ABCUL represents around 70% of credit unions
who in turn provide services to 85% of the British
credit union membership. Our dedicated team
are committed to making a difference to credit
unions in Great Britain. We provide a full range
of advice, training and development services to
help our member credit unions grow and become
sustainable financial co-operatives.
The Children’s Society
The Children’s Society has helped change
children’s stories for over a century.
We expose injustice and address hard truths,
tackling child poverty and neglect head-on.
We fight for change based on the experiences
of every child we work with and the solid
evidence we gather.
Through our campaigning, commitment and
care, we are determined to give every child in this
country the greatest possible chance in life.
Young Enterprise
Young Enterprise is the UK’s largest enterprise
and financial education charity in the UK working
with young people aged 4 to 25. Following the
recent merger of the Personal Finance Education
Group (pfeg) into Young Enterprise, we are
a specialist ‘one stop shop’ for students and
teachers, empowering young people to develop
the knowledge, skills and attitudes they need for
the world of work and life.
For further information please contact:
Archbishop’s Task Group on Responsible
Credit and Savings
Tom Sefton
[email protected]
The Children’s Society
Sam Royston
[email protected]
Young Enterprise
Steve Stillwell
[email protected]
Association of British Credit Unions Limited
Michelle Smith
[email protected]
©The Children’s Society, September 2014
Charity Registration No. 221124 | PCR8/09/14
Report written by David Ayre, Steve Stillwell
and Sam Royston